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Service-Disabled Veteran Owned

Strategic Opportunity Fund

Targeting Alpha in Securitized Credit. Specializing in Agency MBS, Non-Agency RMBS, CMBS, and ABS.

VIEW STRATEGY

The Arkstone Edge

Capturing "Institutional Alpha" within a boutique structure. We leverage discrepancies that mega-managers are often restricted from accessing due to scale or mandate constraints.

Proprietary Valuation Frameworks

We do not rely on off-the-shelf "Street" models. Our edge lies in identifying pricing disconnects where standard analytics fail to capture loan-level nuances.

Information AsymmetryBy conducting deep, security-level underwriting, we identify structural dislocations where intrinsic value exceeds market pricing.
Divergent ViewsWe capitalize on opportunities where our proprietary stress-testing diverges from consensus assumptions.

Structural Agility

Our size is our advantage. We operate in the "Liquidity Gap"—targeting high-conviction opportunities invisible to multi-billion dollar aggregators.

Capacity Constrained AlphaWe access fragmented sectors that larger funds ignore because the position sizes do not "move the needle" for their AUM.
Speed of ExecutionWe act decisively on technical dislocations and complex liquidity events requiring specialized expertise.

Institutional Pedigree

A risk management culture born at Salomon Brothers and J.P. Morgan. We combine "Big Bank" infrastructure with alignment of an independent partnership.

Cycle-Tested DisciplineNavigating multiple market cycles with a "Salomon-style" risk framework prioritizing downside protection.
Flow MonetizationDecades of experience managing massive institutional flows allow us to anticipate ETF rebalancing impacts.

Investment Strategy

Absolute Return Portfolio | Low Correlation to Traditional Equity

Core Mortgage Investments

Agency MBS

Focus on Prepayment Characteristics. Exploiting inefficiencies in mainstream prepayment models.

Non-Agency MBS

Credit-Oriented opportunities in RMBS. Targeting legacy and new-issue sectors with strong structural protections.

Asset-Backed Securities (ABS)

Deep analysis of consumer unsecured, auto, and equipment leases. Identifying mispriced risk.

Commercial MBS

Credit & Agency-oriented CMBS structures. Selecting tranches with superior credit enhancement.

Leadership

Salomon Brothers & Highland Financial playbook. Taught at Drexel Hamilton. Scaled at Arkstone.

Mike Pacca III

CO-FOUNDER & CIO

Mike Pacca serves as Managing Partner and CIO, bringing extensive experience managing over $65 billion in securitized assets as a Senior Portfolio Manager at J.P. Morgan Asset Management.

Prior to J.P. Morgan, he was a lead securitized trader at Longfellow Investment Management and Drexel Hamilton.

"Service-Disabled Veteran."

Staff Sergeant, U.S. Army. Completed Ranger School, Sniper School, and Jumpmaster School. Deployed twice to Afghanistan and twice to Iraq.

Elias Katz

CO-FOUNDER, COO & CRO

Eli brings over 40 years of experience in fixed income. He previously served as Managing Director at Mischler Financial and Drexel Hamilton.

His career includes roles as Vice Chairman & CIO of Highland Financial Holdings and Director at Deutsche Bank Securities.

Eli started his career at Salomon Brothers, Inc. He holds an MBA from UC Berkeley, an M.S. in Environmental Engineering from UNC Chapel Hill, and a B.S. in Civil Engineering from Tufts.

Service Disabled Veteran Owned Small Business Certified

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